Credit card issuers in a new world of their own

Monday, October 11th, 2010

The credit card industry seems to have come of age. Until recently, they were aggressive with their marketing and in the bargain not sparing the aged, minors or the family pets. After having undergone huge financial losses which could have well been avoided, the liquidity seems to have reduced.

The credit card accountability, responsibility, and disclosure (CARD) Act (passed into a law – May 22nd, 2009). It covered various aspects such as the interest rates, fees charged, crediting payments, etc and all of this took time in order to be implemented by the card companies. The 22nd of August was the deadline to comply as per the directives.

The card issuers as well as processors have been successful in avoiding any serious deviations with regard to this. Different businesses seem to be adjusting to both the economy as well as the direct repercussions with regard to the earnings in view of the new directives.

But there is still no clarity as to how the new regulations could affect the two major cards such as MasterCard & Visa. There are new fee structures for the signature as well as the PIN and the Fed will have to finalize on the policies as well as the rules with regard to payments.

The other area of discord between the processors as well as the merchants is with regard to the fraud costs and how they could be allocated.

For long Visa and MasterCard has been locked with competition but there is speculation about the entry of newcomers and fresh technology, which could cut the competition between the two major credit card companies.

Ultimately, it is the spending patterns in developed nations that are directly responsible for the business prospects of the two processors. Since the European as well as the US consumer is under a considerable amount of strain, Visa`s growth patterns that have been projected can only be considered as the best case scenario.

Capital One Financial (COF) has long been in the loaning business to individuals. With the directives as per the new act, there are limits on the fee that the company could charge its clients. There is a change with regard to balance payments also. Earlier, when the customers made monthly payments which were over and above the minimum due COF could make decisions on the balances it could apply that payment and would most often pay off the lower rate balances. However, as per the new regulations COF will have to make payments (over the minimum due) to the balance that is the highest, thereby cutting down on the average rates on the carried balances.

Latest Credit Card Issuers News

Tuesday, December 6th, 2016
It seems that people are always looking for an easier and more convenient way to pay for their purchases. Still, it’s taken some time for folks to get comfortable using their ...
Wednesday, June 22nd, 2016
More and more people are finding out something that used to be difficult to find out—at least for free. Credit scores used to be top-secret and hard to get your hands on, unless ...
Wednesday, January 20th, 2016
Imagine carrying just one credit card with you and earning rewards that you can trade in for free vacations. WorldVentures DreamTrips is teaming up with Nxt-ID to do just that.
Saturday, November 28th, 2015
Good news for U.S. Bank customers: the company has a new online tool to help consumers make savvier choices about personal finances.
Thursday, June 11th, 2015
Discover is going to allow their cardholders to make contactless payments at participating merchants through Apple Pay beginning this fall.
Best Credit Offer
Click the Compare link to compare the checked cards side-by-side at the comparison table.
Consumer Rating: 5 / 5
Pacific Credit Group Emporium Black Card
Copyright © 2001-2016 BestCreditOffers.com All Rights Reserved.

* The BestCreditOffers.com.com webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. BestCreditOffers.com.com does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the BestCreditOffers.com.com website are property of their respective owners.

BestCreditOffers.com makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that BestCreditOffers.com may be compensated by the credit card issuers when the readers apply for a credit card through this site.

BestCreditOffers.com is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. BestCreditOffers.com does not review or list all available financial or credit offers.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.